US tableware and foodservice products giant Libbey Inc. posted 2Q 2003 earnings up 61.4% but fell short of its prior guidance and Wall Street“s expectations, and the company again reduced its full-ye…
US tableware and foodservice products giant Libbey Inc. posted 2Q 2003 earnings up 61.4% but fell short of its prior guidance and Wall Street“s expectations, and the company again reduced its full-year forecast. On 23 July 2003 Libbey said earnings for the 2Q increased to USD 7.9 million, or USD 0.59 a share, from USD 4.9 million, or USD 0.31 a share, a year earlier. The latest quarterly earnings missed Libbey“s May 2003 guidance of USD 0.60 to USD 0.70 a share. Year-ago 2Q earnings included USD 13.6 million in expenses related to an abandoned acquisition. Libbey said sales rose 12.3% to USD 128.3 million from USD 114.1 million in 2002, boosted by results from Royal Leerdam and Traex, both acquired in 2002. Excluding these contributions, sales fell 4.9%, as a result of lower sales to retail and industrial customers due to the soft economy and the Iraq war. The company“s New York Stock Exchange-listed shares traded recently at USD 25.98, down USD 1.32, or 4.8%, on composite volume of 70,800 shares. Average daily volume is 78,796 shares. The stock hit a 52-week high of USD 34.08 on 15 August 2003 and a 52-week low of USD 20.30 on 23 May 2003. Libbey said the economy continues to pose a challenge, but it generally expects some growth in the second half of 2003 as economic conditions are projected to improve slightly and new products should lead to “solid” sales performance. However, the company again reduced its full-year guidance, predicting earnings of USD 2.10 to USD 2.20 a share, on revenue of USD 515 million to USD 520 million. Wall Street currently expects Libbey to earn USD 2.24 a share for the year. In May 2003 the company said it expected 2003 earnings of USD 2.20 to USD 2.30 a share on revenue of USD 520 million to USD 525 million. The company initially forecast full-year earnings of USD 2.55 to USD 2.60 a share. Libbey earned USD 1.82 a share in 2002, including USD 13.6 million in expenses related to the abandoned acquisition.